Midway through the much-hyped presale of the Verizon iPhone today, technology experts and Verizon spokesmen were using a buzzword never meant for a product launch: "throttling."

The word describes an unannounced policy change that began yesterday for new customers that gives Verizon the right to squeeze previously unlimited data service for the network’s most demanding users in the future.

"The top five (percent) heaviest users, they may get throttled at certain times, at peak periods of the day," said spokesman David Samberg. "We don’t want five percent of the users to affect the quality of the network for the other ninety-five percent of the users."

Samberg said the new policy wasn’t released by the company publicly, but was disclosed in flyers at stores and messages on bills and receipts. He also said the policy won't be implemented right away, but gives Verizon the right to restrict data service in the future.

Munchbach said he got an anonymous tip that a document on the Verizon Wireless webpage described new practices for customers who sign up for data plans or features starting today.

The web page said the policies are meant to make sure that most customers aren’t slowed down by "the inordinate data consumption of just a few users."

Munchbach said readers of his blog are split over the new policy.

"Some of them think it’s disingenous to say "Unlimited data" when they give unlimited data to a point and then slow it down," Munchbach said. "Others think it’s fair, instead of charging everyone more, to penalize those who are using the most."

He noted that other networks like AT&T might not throttle service, but could charge far more than Verizon.

Brian X. Chen, a technology writer for Wired who pre-tested a Verizon iPhone, said the new throttling policy could help the average customer, but was disconcerting in what it reveals about Verizon’s openness with customers, and readiness to serve them.

"Before the iPhone came out, they said our network is ready for this," Chen said. "Then the day it came out, they didn’t put out a press release or anything (about throttling). Somebody just saw the memo they put on the website. They didn’t make this very transparent."

But Samberg, Verizon’s spokesman, said the timing was a coincidence.

"Everything that we’ve been doing in the last three weeks, people tie to the iPhone," Samberg said. "No, there’s no connection between that and the iPhone."

He also said Verizon officials talked about it today after the news was reported.

Samberg said the policy was meant to address a capacity issue in Verizon’s data service.

"It’s like a highway with four lanes, and you try to put five lanes of cars on it," Samberg said, describing periods of peak data demand.

But Chen said the carrier previously promised it was ready for the iPhone, and questioned the use of throttling as a solution to capacity problems.

"They’re trying to make it seem like it’s for the greater good," Chen said. "In some ways that might be accurate, but it’s also for them to have as many customers as they can on the network and sustain it."

He also said that if the new policy isn’t implemented with better communication, it could lead to further questions about Verizon’s service.

"When people go over, are they going to be notified that you’re going to be slowed down now, or is Verizon just going to quietly slow them down?" Chen asked. "If they don’t say anything, they could potentially slow down anybody, even if they’re not going over. Going forward, transparency is going to be the issue with this."

But Samberg said that the Bedminster-based company clearly communicated the new policy by providing information about it on flyers, receipts and bills and through salespeople.

Samberg said he asked Verizon officials how users in the top five percent would be notified, and they weren't sure yet because the change was just made. Possibilities for notification include letters or text messages.

At the very least, Verizon may change advertisements for unlimited data plans in the future in order to comply with advertising law, said Rutgers School of Law professor Ellen Goodman, who specializes in media policy and advertising law.
"Generally, you are allowed to make a broad claim and then disclaim it as long as it’s clear and conspicuous and understandable to the ordinary consumer," Goodman said. "They’ll want to be careful, but I’d expect that in the end, it will say ‘Unlimited’ and then there will be a little asterisk."